CONFIDENTIAL

6.

The Home Office have argued that the abolition could be

explained by some reference to the nationality package. We

see no logical connection (the two schemes cater for

entirely different groups of people) and believe that to

seek to make one would create the wrong impression of the

Government's intentions towards Hong Kong and would also

offend the Hong Kong community here. The Department of

Employment are not prepared to recommend an announcement unless their Secretary of State is provided with a credible

line to take.

7.

Against this background, a recent meeting of FCO, Home

Office and Department of Employment officials concluded that

the only feasible course of action would be to decide now to

abolish the whole quota; and to do this by means of a phased

approach, over 3 or 4 years. This would:

a) be consistent with the Government's immigration

policy;

b) not discriminate against any Dependent Territory;

c) enable the individuals and organisations concerned to

adapt to the change.

8.

This proposal was put to the Governors of the six

dependent territories for which WIAD is responsible. The consensus was that there are unlikely to be any political repercussions. Their concern was solely to ensure that any publicity given to the decision was so phrased not to give grounds for anyone to assert that the abolition of the quota reflected a lessening in the relationship between the UK and its dependent territories.

BAGAFJ/3

CONFIDENTIAL

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